Should Investors Remain Optimistic On Scientific Games Stock?

SGMS: Scientific Games logo
SGMS
Scientific Games

Scientific Games (NASDAQ: SGMS) announced the sale of its Lottery and Sports Betting businesses with an aim to raise $7 billion and de-lever the balance sheet as a part of its strategic plan. The company provides technology-based products and services for iGaming, lottery, and social gaming industries. Despite reporting promising revenue growth numbers in recent years, the company has been incurring losses due to high interest costs. So is SGMS stock likely to gain more in the coming weeks and months or is a decline more likely? Per the Trefis machine learning engine which analyzes historical stock price movements, SGMS stock has a 57% chance of a rise over the next month (21 trading days). See our analysis Scientific Games Stock Chance of Rise for more details. (related: Will Tides Turn For Las Vegas Sands Stock?)

Five Days: SGMS -3.6%, vs. S&P 500 -0.3%; Under performed market (26% event probability)

  • SGMS stock lost 3.6% over a five-day trading period ending 01/17/2022, compared to the broader market (S&P500) which declined 0.3% over the same period.
  • Returns of -3.6% or lower over 5-day period in 647 times out of 2517 (26%); Stock rose in the next 5 days in 320 of these 647 instances (49%)
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Ten Days: SGMS -8.3%, vs. S&P 500 -2.1%; Under performed market (21% event probability)

  • SGMS stock declined 8.3% over the last ten trading days (two weeks), compared to the broader market (S&P500) which lost 2.1%.
  • Returns of -8.3% or lower over 10-day period in 523 times out of 2517 (21%); Stock rose in the next 10 days in 269 of these 523 instances (51%)

Twenty-One Days: SGMS 2.4%, vs. S&P 500 -1.2%; Outperformed market (50% event probability)

  • SGMS stock gained 2.4% over the last twenty-one trading days (about one month), compared to the broader market (S&P500) which lost 1.2%.
  • Returns of 2.4% or higher over 21-day period in 1265 times out of 2515 (50%); Stock rose in the next 21 days in 706 of these 1265 instances (56%)

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

 Returns Jan 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 SGMS Return -8% -8% 338%
 S&P 500 Return -2% -2% 108%
 Trefis MS Portfolio Return -7% -7% 264%

[1] Month-to-date and year-to-date as of 1/17/2022
[2] Cumulative total returns since the end of 2016

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